FIRST ON FOX: Foreign entities are snatching up U.S. real estate, even when Americans cannot buy property in their nations, according to Rep. Pat Harrigan, R-N.C., who told Fox News Digital he is introducing legislation to fix the problem.
His bill, the Real Estate Reciprocity Act, would slap a 50% tax on real estate purchases by foreign nationals and entities who have government ties if their governments do not allow Americans to buy property in those countries.
It would require all foreign nationals who purchase land to file with the IRS and require the secretary of state to report each year on which foreign countries prohibit U.S. citizens from owning real estate.
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"While American families struggle to afford a home, foreign adversaries are buying up our country with cash - farmland, neighborhoods, even land near military bases. These regimes ban Americans from buying land on their soil, but think they can carve up ours," Harrigan told Fox News Digital in a statement.
"My Real Estate Reciprocity Act stops it cold with a 50% tax on every purchase, mandatory disclosure, and protections for the ground we raise our kids on. If Americans can't buy land in your country, you won't be able to buy land in ours."
A surprising number of nations have an outright ban or severe restrictions on foreigners purchasing land within their borders. Switzerland, New Zealand, Denmark, the Phillippines, Poland and Vietnam all have stringent rules on the books. In places like China and Saudi Arabia, foreigners cannot purchase land, but they can invest in real estate.
Foreign buyers have long been accused of snatching up pricey apartments in metropolitan areas like New York City to park their assets, driving up housing costs.
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The bill comes amid a slew of legislation designed to address China's increasing encroachment on U.S. farmland, particularly near military bases.
China owned around 350,000 acres of farmland across 27 states as of last year, according to data from the U.S. Department of Agriculture.
As of 2022, foreign entities and individuals held 43.4 million acres of U.S. agricultural land, which is nearly 2% of all land in the U.S.
As of 2021, Canada was the largest foreign holder of U.S. land. At 12.8 million acres, Canadian land ownership was bigger than the states of New Hampshire and Vermont combined.
